South Africa’s food inflation rose to 4.4% in May but this is expected to be temporary
This is despite a slight decline, attributed to an uncertain global trade environment, geopolitical tension and domestic animal disease problems
This forecast is based indications of good harvests in key producing countries such as the European Union, Russia, Canada, Argentina, the United Kingdom and India
The outbreak of animal disease is a concern but there’s good news from the field crops, horticulture and poultry sectors
Frequent outbreaks of foot-and-mouth disease, avian influenza and African swine fever suggest weakness in biosecurity controls and the effect of climate change
The country could return to being a net exporter of maize and the domestic prices to moderate, easing the general food price inflation
An increase in demand could see a record harvest of the oilseed this year
The country needs to retain existing trade partners, while seeking new ones, and delivering excellent products.
The recovery of crops bodes well for consumers as prices should come down
For South Africa to maintain its current access to red meat, wool and other livestock products, it must continue to strengthen its biosecurity and revive vaccine manufacturing